The Crystal Hultz ruling and how it affects benefit payments

In 2024, the U.S. Court of Appeals for the Fourth Circuit ruled in Hultz v. Kijakazi that the Social Security Administration must count certain types of income differently when calculating Supplemental Security Income (SSI) benefits. The case centered on whether money Crystal Hultz received from her employer as reimbursement for work expenses should reduce her SSI payment. The court said it should not, because reimbursements are not income — they are a return of money already spent.

This ruling applies to people who receive SSI in Maryland, North Carolina, South Carolina, Virginia, West Virginia, and the District of Columbia. If you live in one of these states and receive SSI, this decision may mean the Social Security Administration owes you back payments, or that your current benefit calculation is wrong. The ruling does not change how Social Security Disability Insurance (SSDI) is calculated, only SSI.

The practical effect is narrow but real: if your employer reimburses you for work-related costs — uniforms, tools, transportation, or other expenses required to do your job — the Social Security Administration should not count that reimbursement as income that reduces your SSI benefit. Before this ruling, many local Social Security offices were treating reimbursements as countable income.

Key Takeaways

  • The Hultz ruling applies only to SSI recipients in the Fourth Circuit (Maryland, North Carolina, South Carolina, Virginia, West Virginia, and D.C.), not to SSDI recipients or people in other states.
  • Employer reimbursements for work expenses should not reduce your SSI benefit because they are not income — they are money returned to you after you spent it on job requirements.
  • If you received SSI between the date you started receiving reimbursements and the date of the ruling, you may be owed back payments.
  • You will need documentation showing what the reimbursement was for and proof that it was a reimbursement, not a wage or bonus.

Who this ruling affects and who it does not

The Hultz ruling is binding only in the Fourth Circuit Court of Appeals, which covers Maryland, North Carolina, South Carolina, Virginia, West Virginia, and the District of Columbia. If you receive SSI and live in one of these states, the ruling applies to you. If you live elsewhere, your local Social Security office may or may not follow the same logic, depending on how your circuit court has ruled on similar questions.

The ruling affects only Supplemental Security Income (SSI), which is a needs-based program for people with low income and limited resources. It does not change how Social Security Disability Insurance (SSDI) treats reimbursements. SSDI is an insurance program based on work history, and it has different rules for what counts as income. If you receive SSDI, this ruling does not explore to your case.

The ruling also does not affect other types of payments from your employer — wages, bonuses, commissions, or payments for work you have not yet done. It applies only to money your employer gives back to you after you have already spent it on something required for your job.

What counts as a reimbursement under the Hultz ruling

A reimbursement is money your employer pays you back after you have spent your own money on something required to do your job. The key is that you paid for it first, out of your own pocket, and then your employer gave you the money back. Common examples include uniforms, safety equipment, tools, mileage for work travel, or fees for required licenses or certifications.

The Social Security Administration must be able to see that the money was truly a reimbursement and not something else. This means you will need to show documentation: a receipt or invoice showing what you bought, proof that you paid for it yourself, and a record from your employer showing they reimbursed you. A pay stub that says "uniform reimbursement" or "mileage reimbursement" is helpful. A separate check or direct deposit labeled as reimbursement is even better.

Money that does not count as a reimbursement includes regular wages, overtime pay, bonuses, tips, or any payment for work you have not yet done. It also does not include money your employer gives you to buy something in the future — that would be an advance or a loan, not a reimbursement. The reimbursement must be for money you already spent on a job requirement.

How to report the Hultz ruling to Social Security

If you receive SSI and live in the Fourth Circuit, and you believe your benefit was calculated incorrectly because reimbursements were counted as income, you have several options. The simplest is to contact your local Social Security office and explain the Hultz ruling. You can call 1-800-772-1213 or visit your nearest Social Security office in person. Bring documentation of the reimbursements: pay stubs, employer letters, receipts, or anything else that shows what was reimbursed and when.

You can also file a formal appeal if your SSI benefit was reduced or denied based on reimbursement income. The appeal process has several stages: reconsideration, a hearing before an administrative law judge, and further appeals if needed. If you are in the Fourth Circuit and your case involves reimbursements, mention the Hultz ruling in your appeal. You do not need a lawyer, but many people find it helpful to have one, especially for a hearing.

If you believe you are owed back payments because your benefit was too low in the past, Social Security can recalculate your benefit going back to the date you started receiving reimbursements. This is called a "revised benefit calculation." The process can take several months, and you may need to provide documentation for each month you received reimbursements.

Back payments and how they are calculated

If Social Security agrees that your SSI benefit was calculated incorrectly because reimbursements were counted as income, you may be owed back payments. Back payments are the difference between what you received and what you should have received, going back to the month the error began.

The amount depends on how much your benefit was reduced each month because of the reimbursement income. For example, if your reimbursement was $200 per month and Social Security was counting it as income, your SSI benefit may have been reduced by $100 per month (the exact reduction depends on other income and resources). If this went on for 24 months, you would be owed approximately $2,400 in back payments, minus any overpayments Social Security may have already paid you.

Social Security has a time limit for back payments in most cases. Generally, you can receive back payments for up to 12 months before the month you file a claim or request reconsideration. However, if you can show that Social Security made an error and you reported it promptly, you may be able to receive back payments for a longer period. Keep records of when you reported the reimbursements to Social Security.

What to do if you live outside the Fourth Circuit

If you receive SSI and live outside Maryland, North Carolina, South Carolina, Virginia, West Virginia, or D.C., the Hultz ruling does not automatically explore to you. However, other circuit courts may have ruled similarly, or your state may have its own rules about reimbursements. The best approach is to contact your local Social Security office and ask how they treat employer reimbursements for work expenses.

If your local office is counting reimbursements as income and you believe that is wrong, you can file an appeal and argue that reimbursements should not be counted. You can cite the Hultz ruling as persuasive authority, even if it does not directly explore to your circuit. An administrative law judge may consider the reasoning in Hultz when deciding your case, especially if your circuit court has not yet ruled on the question.

You can also contact a legal aid organization in your state. Many provide free or low-cost help with Social Security appeals. They can tell you whether your circuit court has ruled on reimbursements and what your options are.

Common mistakes to avoid when reporting reimbursements

One common mistake is failing to report reimbursements to Social Security at all. Even though the Hultz ruling says reimbursements should not reduce your benefit, you are still required to report them when Social Security asks about your income. If you do not report them and Social Security finds out later, you could be accused of fraud, even if you were following the law correctly. Always report what you receive, and let Social Security determine how to count it.

Another mistake is mixing up reimbursements with other types of payments. If your pay stub shows "gross pay" and then a separate line for "reimbursement," make sure you are only reporting the reimbursement part as a reimbursement, not as wages. Wages are always countable income for SSI. Only the reimbursement portion should be treated differently under the Hultz ruling.

A third mistake is not keeping documentation. Social Security will ask you to prove that money was a reimbursement and not something else. Without receipts, pay stubs, or employer letters, it is much harder to convince them. Keep copies of anything that shows what you spent money on and that your employer paid you back.

Frequently Asked Questions

Does the Hultz ruling mean I get more SSI money?

Only if your benefit was reduced because reimbursements were counted as income. If your local Social Security office was already not counting reimbursements, nothing changes. If they were counting them, your benefit should be recalculated to remove that income, which would increase your monthly payment going forward and may result in back payments.

What if my employer does not give me a separate reimbursement check?

Many employers add reimbursements to your regular paycheck instead of paying them separately. In that case, you will need documentation from your employer showing which part of your paycheck was reimbursement and which part was wages. An employer letter or a detailed pay stub can serve as proof. Contact your employer's payroll or human resources department and ask them to provide this breakdown.

Can I get back payments if I never reported the reimbursements to Social Security?

Possibly, but it is more complicated. If Social Security did not know about the reimbursements, they could not have made an error in counting them. However, if you can show that you tried to report them or that Social Security should have known about them, you may still have a claim. Speak with a Social Security representative or a legal aid attorney about your specific situation.

Does this ruling affect my spouse's SSI benefit?

Only if your spouse also receives SSI and also receives reimbursements. The ruling applies to each person individually. Your reimbursements do not affect your spouse's benefit calculation, and their reimbursements do not affect yours. However, if you are married and both receive SSI, your combined resources and income are counted together, so changes to either person's income can affect both benefits.

What if Social Security says my reimbursement was actually a wage?

You can disagree and file an appeal. Bring documentation showing that the money was truly a reimbursement: receipts for what you bought, proof that you paid for it yourself, and documentation from your employer that they reimbursed you. If you have an employer letter stating that the payment was a reimbursement for a specific work expense, that is the strongest evidence. An administrative law judge will review the evidence and decide whether it was a reimbursement or a wage.